As many as 1 in 3 Americans on verge of financial ruin! It is hard to believe that so many people could be financially ruined if they lost a job, if they could not work due to health issues or an accident at work. While life can be hard and difficult for many in these situations, it gets even worse if you have no savings for emergencies or for retirement. This is the crux of the problem for many Americans, no savings to rely on for emergency situations and little savings for retirement.

If the economy goes bad like it did in 2008, 2001 in the eighties and early, many Americans will suffer as a result with no food on the table and no money for rent, heat etc. What can consumers do to avoid this problem and what should governments do to help deal with this social problem. There simply is not enough money to go around to help people without the public helping themselves.

1 in 3 Americans on verge of Financial Ruin

It is simple, save 10% of your income. If it means suffering a bit, do it anyway because the suffering that you will have if you have no money at all will be far worse. Saving 10% can be difficult at times, however after a few months you will get use to living on 90% of your income. Every time you get a raise make sure that 10% of that raise at the very least goes towards savings that can be used in emergency situations such as when you are laid off.

Avoid spending money that you do not have. Avoid credit cards and if you have to use one, make sure that when you do use it, you have the money to pay the balance on the statement when it arrives. You will avoid paying high interest rates on the over due balances which most people cannot afford.